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Footsie tipped to peak at 5,000

SHARES have surged 37% since their low almost a year ago and experts are forecasting further gains of 5% to 10% before the stock market peaks.

The FTSE 100 hit a trough of 3,287 on March 12 last year and has since rallied to 4,492 as the upturn in the global economy and company profits have boosted investor confidence.

City experts think the Footsie could climb to a peak of 4,750 or even 5,000 as company profits continue to improve. But analysts fear that higher interest rates and slower economic growth will cause the market to pull back later in the year.

The Bank of England has already raised its base rate from 3.5% to 4% since November and the chance of further hikes increased last week after the release of strong economic data. Nationwide building society reported that house prices soared by 3.1% in February, the fastest pace for